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US Defense Department Urged to Integrate Bitcoin to Maintain Superpower Status

A U.S. Space Force major has urged the Department of Defense to integrate Bitcoin as an “offset” strategy. Emphasizing that “Integration of this technology could revolutionize national defense strategies in cyberspace,” he stressed: “Addressing this could be vital for the U.S. to maintain its position as a global superpower and leader among nations.”

‘Bitcoin Represents Not Just a Financial Innovation but a Paradigm Change in Cybersecurity’

Major Jason Lowery wrote an open letter to the Defense Innovation Board on Dec. 2 regarding “the national strategic importance of Bitcoin,” he described on Linkedin. Lowery is an astronautical engineer serving in the U.S. Space Force, the newest branch of the U.S. Armed Forces. The Defense Innovation Board provides independent recommendations to Department of Defense (DOD) leaders on emerging technologies and innovative approaches that the DOD should adopt to ensure U.S. technological and military dominance.

“During my studies at the Department of the Air Force’s Air Command and Staff College, we were introduced to the concept of an ‘offset’ as a strategy that leverages technological advancements to counterbalance or negate an adversary’s traditional military strengths or numerical superiority,” Lowery explained in his letter. “I contend that reusable proof-of-work [PoW] networks like Bitcoin represent an offset strategy for the 21st century.”

He claimed that it’s a misconception that Bitcoin’s use is “limited to protecting financial information rather than practically all forms of data, messages, or command signals,” noting: “As a result, this misconception underplays the technology’s broad strategic significance for cybersecurity, and consequently, national security.” He wrote:

Bitcoin represents not just a financial innovation but a paradigm change in cybersecurity, aligning perfectly with the concept of a strategic offset.

After explaining his thesis, Lowery stated: “Proof-of-work technologies, as exemplified by Bitcoin, have the potential to significantly reshape our understanding of warfare in the cyber domain.”

He continued, “Considering their proven impact, it’s advisable for the Department of Defense to begin formally investigating the cyber security applications of these technologies,” emphasizing: “Integration of this technology could revolutionize national defense strategies in cyberspace and lead to a major shift in how to handle cyber conflicts.”

In conclusion, Lowery stated: “I strongly recommend that the Defense Innovation Board advise the Office of the Secretary of Defense to prioritize the investigation of the national strategic importance of proof-of-work protocols like Bitcoin.” He described:

Addressing this could be vital for the U.S. to maintain its position as a global superpower and leader among nations, especially in an increasingly digital and interconnected world plagued by cybersecurity vulnerabilities.

While many in the crypto community commend Lowery for taking the initiative, some pointed out that this thesis is inaccurate. “Lowery spins a nice narrative, unfortunately it’s nonsense,” said Bitcoin proponent Jameson Lopp, citing his own analysis that highlighted key points of disagreement. Peter McCormack also noted, “His thesis is wrong,” referencing Matthew Pines, director at cybersecurity firm Sentinelone, who explained in a series of posts on X: “Cybersecurity is about ensuring the Confidentiality, Integrity & Availability of networks and data. There is no magic bullet that comes from PoW, which is a consensus mechanism.”

Do you think the Department of Defense will heed Lowery’s advice and integrate Bitcoin? Let us know in the comments section below.

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